Remodeling was solution for business

Denny Yoder started in construction in Florida at the peak of the boom; he soon needed to make a change

By JOSH SALMAN

Denny Yoder opened his construction business in Southwest Florida at the height of the real estate bubble, with a small townhome development in Venice.

In the years that have followed, the Indiana transplant has seen the economy crumble around him, new construction activity stop and competitors close their doors for good.

But rather than fold under the weight of the Great Recession, Yoder found a new niche that has allowed his business to thrive despite the dark days for homebuilding and remodeling.

He credits the switch from new development to remodeling for his ability to weather the tough times. And now, with the market rising again, the luxury home remodeler has moved to a larger office, opened a new downtown showroom and expanded into custom homebuilding.

"I went from one of the most explosive construction economies I have ever witnessed to the complete reverse, when nothing was going on," Yoder said from his new office on Central Avenue. "That's when we shifted our focus to remodeling -- and it has just been one project after another."

Yoder moved to Sarasota in 2005 so his daughter could train at IMG Academy. His parents were snowbirds here, and he had been visiting the area since he was 5.

Yoder holds a degree in mechanical engineering from the University of Arizona and worked five years for General Electric, building everything from jet engines to cell phones.

But his career since has focused on houses. Yoder was a production builder in Indiana, where he sold several hundred homes a year. In Southwest Florida, after that first Venice project of 22 townhomes, Yoder has built his company into one of the most recognized names in the industry. He averages 35 to 40 projects at any given time, ranging from a $5,000 bathroom to a $1 million home makeover, like his overhaul of a Ritz-Carlton Sarasota penthouse.

Yoder Homes and Remodeling recorded more than $8 million in sales in 2013 and employs nearly 30 workers. The company doubled the size of its office when it moved to its new location at 500 Central Ave. in November.

The new showroom, enhanced physical presence and the addition of a cabinet line has boosted sales further.

"Our scope of work has really increased as the economy has turned around," Yoder said. "It gives a lot of people the confidence to go ahead and spend money on a remodel."

Yoder is from a Mennonite family in Indiana, but he's not directly related to the better known Yoder families in town, which operate a renowned restaurant and array of other businesses. But he says that name's recognition and significance here has helped him grow his business.

On the job, he stays true to his Mennonite heritage -- emphasizing integrity and prohibiting employees from the foul language that is common in the construction industry.

"Remodeling is just so much different than new construction," Yoder said. "Because you're going into people's homes, trust is such a factor. We don't want to be just another contractor; we want to create a unique experience for our customers."

Yoder said he's seen the biggest uptick in business from recent real estate buyers who saved enough on their home purchase to update a kitchen or bathroom before moving in.

That trend is being felt throughout the region by home-remodeling businesses, which are reporting increased sales amid the improving economy.

The Home Depot Inc., the world's largest home-improvement retailer, reported last month that comparable store sales for the fourth quarter of fiscal 2013 increased 4.4 percent compared with 2012, and comparable sales for U.S. stores were up 4.9 percent.

The chain's top competitor, Lowe's Cos. Inc., last month reported net earnings of $306 million for the quarter that ended Jan. 31, a 6.3 percent increase over the same time a year ago.

"If anything was positive during the downturn, it was remodeling," said Alan Anderson, executive vice president of the Manatee Sarasota Building Industry Association.

"People weren't willing to go out and buy that house as a big investment, but in some cases, they were willing to go ahead with major remodeling projects. "And to this point in time, that has continued. "It's a growing segment of our market."